Wednesday, May 4, 2011


So, in my haste I seem to have overlooked that 3 is shorter than 1, which if we're playing by the rules means that 5 must be shorter than 3.  This could mean a truncation is in order, but the top for the count to remain valid must be put in at a value less than 83.25 + (4 wave low) [basis /es].  Somewhere around 1400 might end up being the resistance point, but it's any one's guess.

Tuesday, May 3, 2011

Maintaining the Relevance

I haven't been posting because I haven't been nearly as active in the past weeks.  Some of that is personal; I'm getting ready to start a new job and needed to pull money to start that process and won't be trading actively until I settle into that new role.  Some of it is also a function of the market.  From my view 1440 might be a ceiling and fifth waves aren't the type of wave that you want to be trying to make big moves in. 
1370 popped up and proved to be resistance, but it's probably got further to go.  I'd seriously consider ending diagonal for the S&P, we've seen waves end in diagonals over and over since March '09 and I for one am expecting that to materialize again.  You can project your own 4 wave bottom by connecting the start of 1 to the bottom of 2 and projecting that out into time. 
I just want to touch base with whoever is keeping in touch with my base and let you know that I'm generally out of any positions and waiting for a top near 1440 to re-enter into a short position.